With Tax Deadline Looming, Tips For Returns

6:54 AM, Apr 6, 2013   |    comments
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The tax deadline is just nine days away, and this morning one accounting firm tells us the number one thing you can do to get your tax refund back faster while avoiding high interest "refund anticipation loans."

Those loans can also go by the names "instant" or "24 hour" refunds, but they are not refunds.  They are loans that carry high interest rates and can damage your credit.

The federal government cracked down on this type of high interest loan coming from banks, but some tax prep places still offer something like them, again called Refund Anticipation Checks, and interest rates can be as high as 300-percent or more.

A tax partner at Gaines Kriner Elliot says the best way to file right now is electronically.

"We've never done them. I've never looked into them. Quite frankly, I neither have the time nor the inclination. They are very expensive. I would highly recommend for our three week wait. It's the processing fee is really what you're paying. It equates to a very high rate of interest that's usually not worth it. Wait for three weeks and be happy when you get your refund."

A lot of people who think they are going to owe the IRS money might think it's better to wait until the last minute to go to a tax preparer, but you can file your return early and wait until the April 15th deadline to send your check in.

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